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18:25
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Originally posted by No_8
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Raider, no I do not believe so. There were obviously a number of issues identified by the lender during DD that did not meet the pre conditions. Only the insiders will know what these are, but good chance lack of delivery to customers was fairly high on the list. This would have driven a review to establish reasons for lower grade output and other bottlenecks, which seems to have identified the imbalance in the processing facilities. I am only guessing, but seems the initial management responce was to hire more staff rather than look at reasons why the bottleneck was occurring.
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Re issues identified by the lender during DD. Delivery is most unlikely to be the problem but making a profit on the delivery is. The company can't guarantee repayment of the loan and so there is no loan. For a company in the position of VXL there are no cheap funding options. The company is down to its last million, most staff have been retrenched and there is no hard data on actual sales and profitability. Who would lend them money?
